Manufacturers report weak order books
UK manufacturers have reported weaker order books in May, and growth is expected to slow further over the next quarter, according to the CBI.
One in five manufacturers reported total order books to be above normal, while 36% said they were below, creating a resulting rounded balance of -17%, in line with its long run average.
Ian McCafferty, CBI Chief Economic Adviser, said: “Domestic demand for manufacturers’ goods has eased this month, leading to an expectation among firms that growth in production will slow sharply over the coming quarter.”
Despite this however, exports are looking positive, with 16% of respondents saying levels were above normal, and 29% reporting they were below. This created a rounded balance of -12%, which is still above the long run average of -21%.
Due to the softer order books, growth output is expected to slow over the coming three months, although manufacturers anticipate that production levels will remain unchanged over the coming period.
Ian continued: “Export order books, however, are holding up, as UK exporters start to make inroads into high-growth markets.
“Nevertheless, if the crisis in the Eurozone continues, it is bound to have a dampening effect on sentiment in coming months.”
Stock levels remain under control, with stock adequacy (+13%) in line with its long-run average.
This was posted in Bdaily's Members' News section by Ruth Mitchell .
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